>> i drew the charge on that one. i know you know what that is. that's what i'm doing. it ain't snap. my mission is simple, to make you money. i'm here to level the playing te field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now. i'm jim cramer, and welcome to my world. we call my world "mad money." [ laughter ] >> i'm cramer, and we sure do, right? welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you some money. my job is not just to entertain but teach and educate you. call me at 800-743-cnbc or tweet

me @jimcramer. can you believe i've come out here for 12 years telling you hey, i'm cramer and i got a one-man show about business? one-man show about business. every night for 12 years for heaven's sake. in tv that's like 100. in a day where the dow dipped 44 and s&p declined and nasdaq lost .32%, i thought we should use this anniversary show to talk about what i've learned from you. after all, this is the most interactive television show in the world. i take calls in the thing, darn it. we've listened closely to what you've asked and you know what? we had to change over the years to meet your investing needs. most important thing we've learned in the last dozen years, we've learned to teach more and pick less. back when we started the show, we used to do a ton of stock picking. look, it was a raging bull market. people wanted ideas, so what did i do? i obliged. as the show evolved, though, we

recognize picking stocks was less important than teaching you how to analyze the stock. we needed to school you in the process to show you how one stock is more than another, how some stocks are beneficiaries of the wall street fashion show, real runway walkers and others of anything that can make them go higher. we like to use stocks to demonstrate points. these days we picked them as metaphors, metaphors to show you how big money decides what to buy, and what not to buy. maybe you can use these tools yourself. we do segments like off the charts. something we didn't do at the beginning because i want to show you how big institutional money managers think and how we track the moves through the charts. peeling back the curtain is a major passion for me since i started the show. i was professional money manager for a very long time and if i can show you how it works, how

they do their analysis, that makes you more informed as a client, a mutual fund holder or of course, an individual investor. the second lesson, we need you to be diversified so one stock can't sink you. i watched with horror as a hedge fund run by an investor bill ackman wrote down valiant from the 100s to $11 before kicking it out last night because he said it wasn't worth his time anymore. this is after he joined the board of directors a sobering lesson and big bets can backfire for the pros. that's why we're pushing diversification. we don't want a single stock or a single sector wrecking your entire portfolio. do you know before we started "mad money" 12 years ago, before we started, i had a radio show called real money. nationwide thing. the radio gig started after the dot bomb went off. i was furiously trying to get people to diversefy away from

reckless tech stocks. it was so clustered, i thought the best thing would be to call me and name the top five stocks and make a game of it. over a dozen years later, we're still playing it. this is the third lesson. we don't want you buying individual stocks until you put away some money in an s&p 500 index fund so that we know for sure you're diversified before we get going with "mad money." i used to say that your first $10,000 investing should be in index funds. i still agree with that. i don't want to hear after putting away $10,000, you did nothing but buy individual stocks, no. keep your retirement savings in an index fund. individual stocks are only for discretionary "mad money" portfol portfolio, money you can afford to take losses on. it comes with the territory. said it would be a boring show if all i did was come out and recommend index funds. i agree but that won't stop me from preaching that index funds

should be the bedrock investment for the nest egg, not individual stocks, too dangerous. but i also learned something else from you over the years. you love individual stocks. you want to learn how they work, how to pick the best ones, how to avoid the worst ones, so i developed multiple rules to help you avoid the losers. i pitted bulls and bears to get your conviction high enough on an individual stock so you don't sell it when it goes down. buy high, sell low and give me three reasons why you like a given stock because so many invest in companies like valiant without knowing what they do. i'd rather learn from my kids. that's how i found apple stocks more than 100 points ago from my cartable trust. i the urned that into a club. it's how i nailed google and facebook and dominos, my daughter suggested it but not

telling me dad, buy the stocks. no, by them -- by me seeing them use it. constantly. each one. dominos app, looking up stuff on google, telling me the teacher won't let them look up stuff on google for a homework assignment, following instagram and i did homework on each to see how the balance sheet looked and the prospects with the stock over valued versus others, the total adjustable market wouldn't work out, management enough to believe they can navigate through tough times. i've tried endlessly to teach you that. that's how i do the homework. that's the homework. remember, it's always about you. i don't need to do to show. it's about you, and if i do like something and believe the positive fundamentals aren't reflected in stock price, i stay with it until they are and come out here and tell you that. that's why i reiterate you should own apple, not trade it. we had tim cook on. that was compelling. i seen hundreds of ceos like

cook and find clues where they might be headed. you can learn from interviews in retrospect. shouldn't i have figured out what intel would do with driverless cars? the ceo came on the show in san francisco a couple weeks ago and said he wanted more exposure to driverless cars. you know i like certain companies by the frequency i had the ceos on and salesforce.com and that stock was at $8 when we got on. chuck robins doing great stuff at cisco and allergan and beth at key corp, i'll buy if it sells off with the fed. look at that, consumer product best in show. that's just a hand full of those whom i've come to respect a great deal. i can have a list this long but i got to get to the rest of the show. i've tried to get you to understand rotations and they take out a favorite stock and make them stylish again like the financials now or blast out of the oil stocks, all the oil stocks, even though some are worth buying right here, right now.

finally, i made plenty of mistakes along the way. plenty. when i do, though, a little different from everybody else. i shine a light on them to learn from them. i'm not embarrassed anymore. it's always bad. i don't like it, but i've done entire shows devoted to the mistakes and how to avoid them. i'm saddened by them but not embarrassed. all right. come on. let's explain what went wrong and move on. throughout, i've tried to entertain. i have no qualms about this at all. my favorite teachers, the one that got the difficult dry material through my head, they were the best entertainers. they knew it wasn't easy and if they didn't give you a spoon full of sugar, the information wasn't going down. i believe the ability to make a dense topic accessible is the real gift of this show, and goes far to explain its longevity. here is the bottom line. it's been 12 long years since we started, although it seems short. we started a wild and frankly a

bit crazy one-man show about business. i mean, whose ever heard of that? it's been quite a run. i can say it's because we've always been trying to find the bull market somewhere. but truth is, the real reason we keep doing this is you. and we intend to continue to do it for you for many more years to come. let's go to jen in marylanmaryl jenna. >> caller: jim, i would like to give a boo-yah to you. i'm currently playing the stock market game in my class in school, and i was wondering if you thought disney would be a good investment? >> i think you buy disney a little bit every year. okay? i think that you give kids a share of disney when they are born. why? because the movies, the parks, okay, we can sweat it all we want. we sweated the proof abc. people missed about 100 points. that's what happened. happy anniversary cramerica. this show is learning how to figure out yourself about the stock market. it's about finding bull markets,

too. it's about what's best for you. the home gamer. cheers to another 12 years and thank you to my staff for making me look good every night. on "mad money" tonight, center of the global supply chain, amazon customer, distributing a portfolio of distribution centers, warehouses and commercial real estate around the world. tonight i'm speaking to the ceo and getting a real read and perception versus reality. two camps of investors telling you where i stand and where you need to know where you stand and for the talk of a trillion dollars infrastructure plan, could new corp be a stock to consider? stick on this 12th year with cramer. >> chances are you know, creame. >> the very unstable jim cramer. >> there is a guy, jim cramer that rolls up his sleeves and never sits down and walks around

the studio. >> this fiery money manager literally rolls up his sleeves to host cnbc's "mad money". >> jim cramer. >> he's evidently insane. >> you have to be nupts to understa -- nuts to understand the market and i am nuts. >> let me offer you a heart-felt boo-yah. >> it's arrested development. >> this is a triple sell, don't buy. >> don't buy! >> spend all day with you until my dad yells at "mad money" with jim cramer. >> bottom line. >> everything is going to be fine. >> stark industries. >> that's a weapons company that doesn't make weapons. ♪ ♪ >> that kid on the tv, make him watch "mad money" all day long. >> boo-yah. >> are you okay? >> oh, yeah, it's nothing, i was a gust est on "mad money" last night. >> what's that? cramer, stop it, stop it. >> hello fellow facebookers, i'm

here to do one thing, get you more friends. >> it's "mas money". >> what's up with the stock market? >> i don't know. what's up with the stock market? >> jim cramer had this to say about the eeconomy. >> they are nuts, they are nuts, they know nothing, nothing. >> in retrospect, were you too calm. >> he was right, we were at the beginning of this great panic. >> that can't be jim cramer, is it? >> buy, sell, what? >> jim cramer is in the house, boom, cnbc's jim cramer. >> mr. cramer, are you the tv personality that regularly shouts and badgers on "mad money". >> badger is debatable but i have a flamed boy yent personality. >> you have beautiful eyes. >> your audience, great people can understand the things i believe they should be invested in. >> philly fan jim cramer fulf l

fulfilled a life-long dream by throwing out first pitch here at citizens bank park. >> compare your image on college campuses today to your image on college campuses or on a college campus when you were in school. >> first of all, i had hair. >> as jim cramer. >> i've never seen the president that fever. >> this is "meet the press." >> i can't believe i got my owy show. >> don't miss a second of "mad money," follow @jimcramer on twitter and send jim an e-mail to madmoney@cnbc.com or call us 1800-743-cnbc. miss something? head to mad money d.cnbc.com. mo. you always p

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to raise interest rates tomorrow not a lot of investors are thrilled about owning trust because these are the higher yielding stocks that tend to do worse when rates rise in the bottom market competition heats

up. what if you have a frus ritrust a second lar growth trend. how consumers pretty much and leave the comfort of their couches. that's bad news for retail space. on the other hand, it might be good news for pld, global indecember yeinde industrial real estate trust and fulfillment centers and the company counts amazoncustomers. sports yield of nearly 3.6% when the fed starts tightening in earnings, let's take a closer look with hameed, the ceo of prologis. >> have a seat. >> how are you? >> i think you have great presentations and one of them,

i'll go right there because it seems interesting. you say e commerce needs three times the space of distribution of any other kind of commerce and you are really riding the wave? we are, for sure. if you imagine what a warehouse looks like with e commerce as it's primary activity, you're dealing with parcels. you ship something this big and put in the package about this big with packing and material, that takes up a lot more space than palates or goods going through a store. this trend has been really good for us. >> this is structural change is not going away. if anything, it's increasing. >> if you believe e commerce is going up. >> you're following customers who need you. >> absolutely. this trend is stronger globally because they never had the big box phase of retail so they are skipping right over that. >> you're talking about supply chain disruption. there is disruption around the world. now there is also something we've learned from xpo log g oo

logistics. >> good customer. >> they are the last -- >> i'd like to talk about less touch. >> sure, please. >> that's more than last mile. last mile is really last five miles. in the old days, the last mile was you getting in your car going into an elevator with a bag buying stuff, putting it in your bag, back down into the parking lot. last touch is now somebody doing that for you. so being close to pockets of population is really, really important and we're actually taking advantage of that in the cities by building multistory product in urban neighborhoods to densefy the warehouse space. >> in urban neighborhoods. i see you on i-95 philadelphia to new york. is there enough land? >> that business you see along i-95 is really important. that serves the city but once you get the goods into the city, you got to get them into people's homes and you need a

last touch location to be able to stage all this stuff. that product doesn't exist. you have to create it. and the only way you can create it in mass is to go multi story, which we're doing in some cities like seattle. >> now, one of the things that struck me and i think this will play into it, in this presentation you talk about the idea the banks assets concentrated in the largest institutions, it's hard to get a loan to go against you, isn't it? >> if you don't have money. developers are spoiled and used to borrowing 110% to build. >> right. >> you can't do that anymore. the banks find it less profitable particularly for speculative development. really volumes of supply are way down and that's in a way the story of demand. >> some are hurt income retail. vacancies at all-time lows for you. >> i've been doing this for 35

years. this is the lowest vacancy rate i've seen. >> i've tried to figure out -- the trade too much together. you're a growth stock with the yield that's a real estate investor. is that a better characterization? >> describing us as a real estate investment trust is explaining business by a legal format or incorporated in delaware or maryland. it's just a legal format. we're in business. we're a global company. i know that's a bad word today. >> that's all right. >> we make a ton of money overseas. >> right. >> and meeting the needs of customers and after all, all these customers have global needs everywhere. who operates -- which customer operates only in the u.s.? one out of the top 20. the u.s. postal office. >> there you go. anyway, i learned a lot through the last touches and new thing to add to my lit knee, okay? that's the chairman, ceo of prologpr pro logics.

it's by far the best in class. "mad money" is back after the break.

right now, you can divide this market into two camps, those who think perception matters and reality matters. problem is there are times like this week where these two groups clash. i like reading twitter to see what people have to say about me. and it's incredible to watch people attack me for being bullish last week and say i'm being bearish this week as if that was really the case how i feel. i could block people who don't understand how i haven't flip-flopped but instead, i prefer to watch it unfold. the basic premise of my world view and you have to have a world view to invest right now is the economy is strong enough to handle not just one but two

or maybe three rate hikes. that premise is based on what happens when i speak with executives, united technology greg hayes talking about a sudden surge in orders or otis or bill san brooks talking about the projects in dallas and new york city, san francisco or from martin marietta and texas are humming. these executives see strength in part because nothing is going through congress so nothing has been done by the new administration other than deregulation. when and i do think it's when, not if trump gets his way on lower taxes there should be a further bump up in the economy. that's obvious. against those a half a point or three quarter point rise in interest rates will be just fine. it won't help but i don't think it will hurt that much.

that's the reality and as far as i'm concerned, the reality is pretty okay. it should test time and be the one that survives. i haven't changed my view on the reality one bit. i think it's going to pan out. but then we get to the perception and that's the problem. the perception comes from my years of investing. i know when rate hike cycles really get going, people fear that they will take on a momentum on themselves when the fed raised rates 17 times and helped cause the great recession. believe me, we'll hear that view a lot after tomorrow's fed meeting. that's what happens. news anchors will ask could that wrong-headed cycle happen again? not likely and commentators will press and someone will say, sure, that could happen and

others to answer and back and forth and back and forth echo chamber, sister, daughter, sister, daughter, next thing you know, you have the perception trumping the reality. short term, the perception rate hikes could do damage, not the reality. that's what we need to get through and by pointing it out, i'm simply trying to prepare few for the news nickel. why am i worried if i know the reality is fine. this comes from something many people find difficult to understand. there are plenty of moments where perception can over run reality and this a week where it's likely to happen by panic. they are not so good. look at the valiant. people panic. does that mean i'm bullish? now i'm bearish. in the old days i'd say don't be an idiot. i try to be more diplomatic,

right now i'm saying i'm merely trying to tell you and express the different strains of thought that coalesce into stock prices. i want people to understand them so they can become better investors and not freak out when the perception bends the reality. and to do that i'm willing to tolerate belligerent comments on my twitter feed, the best to learn how best to teach and what to teach at some of the more difficult moments like this one in the stock market. let's go to dan in new jersey, dan? >> caller: jim, congratulations 12 years anniversary "mad money". >> thank you. >> caller: thanks for helping the small investors. >> that's what the show is. >> caller: i got a question on brk, is the valuation out this

point too rich to get in in your many o opinion? >> absolutely not. you can buy it in stages. warren buffet is saying you can buy index funds. you can buy some of that and buy some if it goes lower because that's -- i believe the value of the company is actually much larger than where the stock trades because there is so much it's difficult to understand but yes, i endorse it entirely. adam in my home state of pennsylvania, adam? >> caller: boo-yah, cramer, from pa. >> never looked better, what is up? >> caller: first hawaiian bank, they did the ipo last august at $23 a share. then they did a secondary stock offering on february 1st at 32. stock is now $31.47. has an 88 cent dividend, which is about 2.8%. buy, sell or hold? >> i like that situation. i didn't know it come off of

that secondary. it did have quite a run but they all had big runs. if you get three rate hikes, this will be good. that economy is not as strong but i like it but this is not a trade, sir. it's not a trade. this may be a multiple year hold. and that's the way i would approach it. dave in illinois, please, dave? >> caller: dr. cramer. i would be remised not to recognize the completion of your 12th season of "mad money". >> thank you. >> caller: hat off to you, my friend, for you and your staff. >> my staff is great and have been with me the whole way. thank you so much. how can i help you? >> caller: my stock is e trade who reported fourth quarter results earlier today. recently there's been a price war among broke rage firms. from 795 to 495 and charles schwab soon followed. e trade also reduced their commissions. >> right.

>> caller: yesterday, ubs initiated coverage with a buy recommendation siting expansion into option markets and possible takeover target, so jim, would you join tiaa craft portfolio manager stephanie link and i and give your blessing for -- >> easy call, absolutely. i've liked it and that's because i like the way the credit balances go up and how much they make as the fed raises rates. don't worry about the commissions. that's just commissions are so much less important than how much they will make on a credit balance. e trade is a buy. i'm joining link and recommended it. good place to start buying. understand i'll not bull bear, bull bear, perception could trump reality this week. we got to get through this week. it may be a cause for concern. but we're going to get through it together. much more "mad money" ahead. you heard me hit some but are you looking for more signs in the u.s. economy improving? i'll see if increased field demand can make you industrial

sized profits when i talk with my favorite ceo in the steel business, john and new corp and then, there are three of the hottest plays in tech, facebook, apple and tesla. can the momentum, we'll have to go off the charts to find out and rapid fire, can you believe it's been 12 years addition of the "lightning round"? so stick with cramer. the command performance sales event is here. experience exceptional offers on our most refined models ever. get up to $2,500 customer cash

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can the steel stocks keep climbing won't be working through congress any time soon. i don't think it will. that's an important question because few industries would benefit more protecting manufactures and spending big on in insta structure. does new corp need help? the company didn't blow people away when it reported in january. got to wonder whether some gains could be repealed if trump's economic agenda gets put on hold and the gop tries to figure out health care. on the other hand, steel makers like nucor, means they tend to

do a heck of a lot better than the average stock in accelerating the economy. i think that that's probably enough but don't take it from me. let's talk with the chairman, ceo of nucor and he has a better idea how the company is doing. welcome back to "mad money". >> hello, jim, how are you? >> it looks from get-go in the conference call, you think 2017 will be better than 2016. how come? >> well, there is many reasons. when you look at the industry o utilization rates, pricing is up. imports are down. that's also a good sign. service and inventories are down, another good sign. what we said on our conference call was that 2016 was better than our 2015 and we expected 2017 to be significantly better than 2016. >> you spent a lot of money since 2009, since 2016, you invested 7 billion.

a lot of companies were trying to stay afloat. what has that investment allowed you to do? >> profitably grow our company and frankly, jim, that's a benefit of the strong financial position. during the down cycles, we can invest when it makes the most sense. acquisitions are cheaper. equipment and labor is a little bit cheaper. investing during the downturns allows us to build our potential earnings power for the inevitable up cycles when we can then release it to the benefit of our shareholders. >> john, if you can get corporate tax reform, could you hire more people? i know you sense that there is demand picking up here. >> there is no doubt that the demand is going to be picking up. and if we did have benefits from a change in the tax laws that reduce the corporate tax rate, we would definitely invest it and grow the company and result in hiring more people, creating better, higher paying jobs for more american workers and that's

what we need in this country. >> at the same time because you've been so dominant, you've really come on strong in autos, you always have to go as your predecessor told me where the customer is, which led to a decision to do a joint venture in mexico. do you think the president would recognize there is really no choice, nucor has to do what customers want? >> there is no doubt about that. and jim, just so we're clear, we've been in mexico for over a decade. we know the market, we know the customers there and i would point out when you look at the automotive companies based in mexico, they have invested billions, literally billions of dollars on their factories there. they are not going anywhere. so our mill in mexico will supply galvanized steel already there. we will be supplying about half of that from the united states. 200,000 tons of steel produced in america by american workers,

we will export to mexico. so this is actually an export opportunity creating american jobs. >> got it. where do you stand in terms of tariffs these days? i've always felt and, you know, candidly changed my mind about a lot of things, your predecessor that we've been in a trade world, we just didn't know we have been. there have been some steel, some steel qualities that have been -- that they put tariffs on but if you -- in an ideal world where you're the low cost producer and worked so hard to be the low cost producer, what other forms of steel would you like to see protection on, given the fact the cheaters are high-costprodue deucers here. >> in 2016, jim, we had many victories on the trade front surrounding the flat oil businesses. we still need some help on the long product side, particularly rebar. we feel there is a lot more to

be done to protect american jobs in the rebar market. we got some help, victories in 2016 on flat oil and i have to say our government has made significant progress in strengthening our trade laws and strengthening the enforcement of those trade laws so we're making progress but there is still more work to be done but jim, i assure you of one thing. nucor will continue the fight until we get free and fair trade for america. >> what would happen if we had a trillion dollar infrastructure bill? would that put a huge number of people to work if they did it right? >> absolutely. by doing it right it means rebuilding the krcrumbling infrastructure by using american steel melted and welded in the united states. it would be a tremendous amount of steel that would be required and it's absolutely essential. infrastructure is the life blood of manufacturing, and manufacturing is the life blood

of every economy in the world. so we need to get our crumbling infrastructure repaired, we need to do it with american steel, produced by american workers. that would create a tremendous number of high-paying m manufacturing and production jobs in the united states. >> one last question. you have the dividend and no problem paying because you have a great balance sheet, any chance you get back -- nucor used to pay special dividends. think that could ever happen again? >> you know, that depends on our performance, obviously, we would love to have the opportunity and the ability to pay a special dividend again and if we see the right things happening as we see today happening in washington with trade, with tax, with infrastructure, frankly, with deregulation, we believe all of those will help america and nucor get back to a position where we can pay special dividends again. >> well, there's a lot riding but i know you're going to do

well with or without washington. john, chairman and ceo of nucor. great to see you. >> good to see you. thank you. >> i hope you understand why i recommend this. you call a.k. steel and letter x. i need the balance sheet and dividend. i need their business. this is the one to own.

it is time, it is time for the lightning round. buy, buy, sell, sell. play this sound and the lightning round is over. are you ready ski daddy? it is time for the 12th anniversary of lightning round. let's go to debbie in nevada, debbie? >> caller: big boo-yah to you, jim, from vegas. >> nice. i wish i was there, what's up. >> caller: thanks for your great advice over the years. i want to know your thoughts on cybr? >> cisco came in aggressively it hurt stocks and check points become my favorite. so let's be a little more

careful in respect. i like proof point. they have been good but things have gotten tough in that area because of cisco being so aggressive. let's go to judy in indiana, judy? >> caller: hi, jim. i just want to take a chance to thank you for -- and your team for having the very best show on tv. for giving advice and education on stock investing. >> thank you. thank you very much. probably digging this stuff. what's up? >> caller: well, i'm interested in jacob engineering as to purchase stock and i wanted to see what you thought about -- >> you know, judy, you need that infrastructure bill. that is not going to go up because it ran up betting that would happen before everybody got caught up in washington with repeal and replace. that's been a casualty. let's go to david in pennsylvania, david? >> caller: good evening, jim.

>> david? >> caller: thank you for taking my call. >> how can i help? >> caller: for the last 30 years i owned syy, cisco foods and had a nice run lately. >> keep on it. the only engaged investor that we have found that you can follow his buys after they are announced and still make money. i'm not done. let's go to patrick in massachusetts, patrick? >> caller: hi, jim, thanks for all your hard work. hey, what do you think about dl genetics? >> we had them on a couple years ago and i am just shocked about how well it is doing. that said, it is doing so well up at 67. i talked about this last night with david favor. we -- i think it's run too much so i want to be very careful. i'm going to have to say don't buy. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. this is my new alert system for whenever anything happens in the market.

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like i told you last night, this could be a tough week and we could get a sell the news backlash after tomorrow but just in case the market goes into a tail spin, which i'm definitively not expecting, i want to give you additional tools to figure out the right moments as long as you're nimble enough. if you're not a trader, that's okay. maybe do some learning here. that's why tonight we're going off the charts with the help of

caroline, she's that brilliant technician that runs the queen.com website and happens to be one of my colleagues where i blog every day. to introduce you to one of the ways she determined whether a stock is a buy or a sell. and we're used to my profile example. we'll use facebook, apple and tesla. now regular viewers know that i'm a fund mentalest. i like to judge stocks based on what's happening at the underlying come opinipanies ande broader economy is doing. this is a confusing moment from a fundamental perspective. the global economic economy is getting stronger but on the other hand, many sectors run dramatically and a lot of groups tend to sell off when the fed raises interest rates, at least historically. i think here and there, there's -- let's see. there is absolute good news for the banks if we raise rates but at the same time, i can see dozens of hedge fund managers selling because of rising mortgage rates or long-term growth names because they go down off of new found worries

about inflation. in short, i can't blame anyone for feeling like it's tough to navigate and at times like this, often helps to fall back on the charts, especially since many money managers are closet chartest. take that from me. it's true. which brings me back to the technicals, normally when we feature her work, tonight we'll do something different. something different from her tool sbox, something that could come in handy if this market experiences turbulence. moving average cross overs, often in the past you know i've told you that when a stock's 50-day moving average is a short-term average crosses the two-day moving average, which is my favorite, a longer term measure and a lot of chart watchers see it as a green light. the method is usually more complicated. she likes to watch the five and 13 day. five and 13 day exponential

moving averages is similar to regular simple moving averages except it gives more weight to the rent is action. she wouldn't recommend using this indicator, the fact is when brodin says the five-day exponential moving-day average cross above the 13-day she gets more bullish and when it crosses below the 13-day. whoa she gets more bearish. this doesn't always work. we'll take a look at examples but in general brodin believes it can help you stay on the right side of the market. for example, let's start with facebook. look at this daily chart. for the last ten weeks or so, facebook has been on fire. and you'll notice that on january 5th, right as this rally began, okay, right when it started to heat up, we got exactly the kind of cross over brodin is talking about. facebook's five-day exponential moving average, which is the blue, okay? went above the 13-day, which is the red. since then, the stock has been red hot running nearly 20

points. a lot of people wrote it off here. that was obviously wrong. of course, she doesn't just look at this in a vacuum right about the time of the bullish cross over, facebook tested crucial important levels, which we know her work as, which pointed to more positive trajectory. what is important, throughout this whole move, the five-day moving average stayed above the 13-day. look at that. the blue is always above. all right? to her that means the stock is in buy mode and as long as the five-day stays on top, it will remain in buy mode and we got a negative cross over with the five-day going below the 13-day. then brodin would get worried and might be a change of pace. speaking of negative cross overs, check out this daily chart of tesla. tesla stocks spiked nicely and went up $12 on the news it plans to roll out a compact suv. the fact is this is getting hammered for the past month. maybe after today's rebound and still down close to 30 points

from the highs, before that, though, tesla was rallying like crazy from early december through mid february, the stock gained from 180 to 287. what a great move. both these moves, the rally and more vent sell off are terrific examples of what brodin is talking about. on december 8th. tesla's five-day moving average, so we go back here. crossed above the 13-day. if you use that as a guide post, you could have bought the stock at 192. that lasted for more than two months but on february 17th, shortly after tesla started selling off, the five-day moving average went back below the 13-day. for brodin that's a classic and if you followed it, you would be able to get out of the stock when it was still in the 270s. longer term brodin says she's not comfortable going along with tesla while the moving averages are flashing a sale sign. you can see that 13 days above the blue and therefore still in

sell mode and she doesn't -- i felt with this going up we might have a change but she's not changing her view. how about the daily chart of apple? if you watch the exponential moving average, the five-day crossed above the 13-day in december. that's brodin's signal and since then, apple is roaring climbing the multi year high. of course the signal coincided again with important price relationships but we know how right she's been the whole time. the point is the moving average cross over is worth watching. i need this stress that like technical analysis, general is not foolproof. just in apple's chart, you can see what i mean. look at this bullish crossover brodin likes to see in november right there but the stock fizzled and did nothing. sometimes the signals won't last long and you won't be nilble enough but every now and then this methodology will guide you to a sustained bull run in facebook and apple or sidestep a sell off like the one tesla was getting hammered by until today. here is the bottom line in a

confusing time for the stock market, it's important to have touch stones to fall back on. if you take the chart seriously, you want to keep an eye on the five and 13-day exponential moving averages. when the five days are on top, you're in good shape. when 13 days on top, you got to worry and oh, at least for now this one tool suggestions that the s&p 500 with the fed right on the horizon is still in buy mode. stick with cramer. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.

all right. honestly, who is luckier than i am? i want to thank everything behind the scenes, part of the team including regina who is my executive producer with us since the beginning of the show and thank you cramerica for everything you've done for us. there is always a bull market somewhere, i promise to find it just for you here on "mad money." i'm jim cramer and you'll bet i'll see you tomorrow.

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